Maynilad sets P18-B capex for 2014

Maynilad Water Services Inc. (MWSI) is looking to ramp up its capital spending to P18 billion next year, which will be largely spent for sewerage and pipe-laying projects.

Herbert Consunji, MWSI chief operating officer, said in a text message to reporters that the capital expenditure (capex) of the company next year will be around P18 billion.

In 2012, the capex of MWSI was around P8.4 billion, while this year, the company set capital spending at P19.3 billion although this will not be fully utilized, according to Consuji.

“All of these were based on business plan submitted to MWSS [Metropolitan Waterworks and Sewerage System]. Actual disbursement [for 2013]will be much less than this,” Consuji, who is also the chief financial officer of DMCI Holdings Inc., said.

MWSI is the largest private water concessionaire in the Philippines in terms of customer base.

During the first nine months of the year, MWSI’s reported that its net income was marginally lower by 1 percent at P5.04 billion compared to the P5.09 billion recorded during the same period last year. The income dip was caused by one-time front-end fees and taxes from the pretermination of approximately P21 billion in long-term loans. The purpose of the loan pretermination, according to the company, is to avail of current lower interest rates and improve the company’s collateral position.